The Infrastructure Development Company (IDCOL) in Bangladesh will push in funds worth $166 million to improve energy efficiency in the textile value chain in th country. Out of this, the company will seek $100 million in loans from the Green Climate Fund (GCF) and a further $66 million through borrower co-financing. The funds will have a five-year disbursement period and a 10-year repayment period with a two-year grace period.
IDCOL, a non-bank financial institution working in the medium to large-scale infrastructure and renewable energy financing space, is accredited by the GCF to handle loans of up to $250 million. The company includes both senior government officials and three private sector representatives on its board. The proposal to GCF is likely to be submitted by September this year. If approved, IDCOL will be authorised to identify local recipients of funding. There are currently three approved GCF funded projects in Bangladesh.
Based in South Korea’s Incheon, GCF is a fund established within the framework of the United Nations Framework Convention on Climate Change (UNFCCC) as an operating entity of the financial mechanism to assist developing countries in adapting practices to mitigate impact of climate change.